The Washington Post reports that the stimulus-backed Department of Energy loan guarantee program, which financed green energy companies like the failed solar energy start-up Solyndra and three projects for the Abengoa corporation, has created far fewer jobs than the Obama administration projected:
A $38.6 billion loan guarantee program that the Obama administration promised would create or save 65,000 jobs has created just a few thousand jobs two years after it began, government records show.
The program — designed to jump-start the nation’s clean technology industry by giving energy companies access to low-cost, government-backed loans — has directly created 3,545 new, permanent jobs after giving out almost half the allocated amount, according to Energy Department tallies....
The loan guarantee program can also be unwieldy. It works like this: Companies negotiate with the Energy Department for a government loan guarantee, which means taxpayers will pay off bank loans if the project fails. Then the Office of Management and Budget must sign off on the guarantees, often changing terms.
The Energy Department says that the green-jobs program is still on track to meet its employment goals. It claims credit for saving 33,000 jobs at Ford Motor Co. — about half of the Detroit automaker’s entire hourly and salaried U.S. workforce. The department says the biggest of its loan guarantees, for $5.9 billion, protected the jobs at Ford by enabling the automaker to upgrade plants in five states to build more energy-efficient vehicles. The Energy Department said the loan would “convert” the Ford jobs to “green manufacturing jobs.”
Several economists said they doubt the loan program saved 33,000 jobs at Ford.
Read the whole thing here.